- Jul 1, 2011
- Reaction score
- Political Leaning
One of the biggest private pension funds in the country is almost out of money, and fresh out of options.
The Central States Pension Fund has no new plan to avoid insolvency, fund director Thomas Nyhan said this week. Without government funding, the fund will run out of money in 10 years, he said.
At that time, pension benefits for about 407,000 people could be reduced to "virtually nothing," he told workers and retirees in a letter sent Friday.
In a last-ditch effort, the Central States Pension Plan sought government approval to partially reduce the pensions of 115,000 retirees and the future benefits for 155,000 current workers. The proposed cuts were steep, as much as 60% for some, but it wasn't enough. Earlier this month, the Treasury Department rejected the plan because it found that it would not actually head off insolvency.
Failing Central States Pension Fund is out of options - May. 20, 2016
this kind of thing makes me sick. a pension is deferred salary, and should be guaranteed as such by law. if a place i used to work at goes tits up, they can't send me a letter demanding that i return some of my 2005 salary. salary in the form of a pension should be protected in the same way. once that promise is made, it should be guaranteed by law.